May 26, 2023 [Seeking Alpha]- Energy Transfer (NYSE:ET) has appealed the U.S. Department of Energy’s recent decision not to extend its export authorization for the Lake Charles LNG terminal, Bloomberg reported Tuesday.
Energy Transfer (ET) criticized the decision, saying in a filing it caused one potential customer to suspend contract talks.
The DoE’s denial violated U.S. law governing such regulations, “raising serious constitutional concerns of lack of due process and impermissible takings,” the company wrote.
Energy Transfer (ET) said it needed a three-year extension in order to accommodate unplanned delays and “severe shortages” of equipment needed to build the Lake Charles project.
In April, the DoE rejected the company’s request for another extension of its deadline to begin exports from the planned export terminal in Louisiana.
The extension would have pushed a December 2025 deadline out to December 2028; the DoE first issued an export authorization for the project in 2016 and granted an extension in 2020.
Lake Charles LNG has secured long-term contracts covering 7.9M metric tons/year of capacity and is in talks for additional long-term offtake agreements that include preliminary deals with two Japanese customers.
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